ACWA Power Announces Mega Solar Deals with Saudi Power Procurement

ACWA Power has entered into three significant power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) and Saudi Aramco Power Company, a subsidiary of Saudi Arabian Oil Company (Aramco). The agreements, revealed in a recent bourse filing, pertain to the development of three large-scale solar photovoltaic (PV) plants.

The contracts, signed on June 26, 2024, involve Saudi Power Procurement and three project companies—Buraiq Renewable Energy Company, Moya Renewable Energy Company, and Nabah Renewable Energy Company—each owned by ACWA Power. Badeel, a company fully owned by the Public Investment Fund (PIF), will hold a 34.90% equity stake in each of these companies.

The total value of the agreements is SAR 12.30 billion ($3.30 billion), with each PPA lasting 25 years. The PV solar plants, Haden and Muwayh, will each have a production capacity of 2,000 megawatts (MW), while Al Khushaybi will have a capacity of 1,500 MW. These facilities are located in the western and northern regions of Saudi Arabia.

The agreements encompass the development, financing, construction, ownership, and operation of the projects. The financial impact of the contracted revenues is expected to be realized after the Commercial Operation Dates (PCOD), projected for the first half of 2027.

In the first quarter of 2024, ACWA Power reported net profits of SAR 296.17 million and revenues of SAR 1.25 billion, reflecting its strong financial performance. The company has also been involved in power plant deals that include delivering power starting from 2027 through its subsidiary, NOMAC.

Source: Mubasher